Security crucial for Africa’s wealthy investors

Financial experts predict that growth in ultra-wealthy populations in Africa will outpace that of Europe and North America over the next decade. Such findings can be found in the 2017 edition of The Wealth Report, launched by Knight Frank and Standard Bank Wealth and Investment.

The Report states that the continent’s number of ultra-high-net-worth individuals will increase by 33%, and key hotspots for growth will include Ghana, Mauritius, Ethiopia, Tanzania, Uganda, Kenya, and Rwanda.

Deon de Klerk, Head of Wealth: Africa Regions for Standard Bank, reveals that preservation of capital and generational wealth transfer remain as important as they have ever been to an effective overall wealth strategy, but now investors are also concerned about their short-term prospects as they seek to navigate an increasingly uncertain environment.

According to the report, the total number of global ultra-wealthy - those with USD30 million or more in net assets – rose by 6 340 in 2016, taking the total to 193 490. What’s more, countries offering fiscal and political stability, as well as excellent quality of life, are expected to see strong growth over the next 10 years.

It’s imperative that African countries position themselves to attract new business and investment, boosting economic growth and improving financial inclusion. So, while the ultra-wealthy in Africa only grew by 13% between 2006 and 2016, growth could be more than double that rate over the next decade as policy and regulatory frameworks make countries more conducive for doing business.

The current level of market complexity has heightened risks, highlighting the need for specialised investment and wealth management expertise. At the same time, absolute discretion and confidentiality are crucial. Africa’s ultra-wealthy also want to leave a legacy through philanthropic activities.

The award-winning Standard Bank Wealth and Investment fits this bill perfectly. An extensive presence throughout the continent combined with the Standard Bank Group’s heritage of over 154 years, empowers the Bank with the necessary diversification to provide seamless, bespoke on- and offshore offerings. By partnering with Frank Knight, Africa’s leading wealth manager delivers valuable views on key trends underpinning the continent’s wealth market.

“Our approach ensures clients receive best-of-breed solutions. With increasing volatility experienced in the markets, there is an increasing demand for bespoke investment solutions that achieve superior risk-adjusted investment returns alongside those which give a higher degree of confidence to achieve each family’s unique goals and aspirations,” says Mr de Klerk.